Bitcoin, and other cryptocurrencies like it, seem to be settling down after last week"s frenzy, which saw the blockchain-based coin increase in value to a record $19,500. This represented an increase of $7,500 compared to its valuation of $12,000 just a week prior.
The tide seems to be turning, though, as the cryptocurrency saw a massive dip and fell below $13,000 per bitcoin this Friday. It"s not the only blockchain-based currency that"s seen a double digit fall in its value, as other major players like Ethereum, Litecoin, and Bitcoin Cash recently experienced devaluations equivalent to 28%, 32%, and 37%, respectively.
The massive fluctuations in cryptocurrency prices are a result of investors" anxiety that the recent increases in their value represents a bubble, which will soon be followed by major losses. Another contributing factor to the fall of bitcoin specifically are the transaction fees, which reached an all-time high of $50 on average this week, doubling in as many weeks.
Bitcoin has seen similar, sudden falls in value before, and not only stabilized but also inflated in value soon after. Some experts already believe the future price of bitcoin will be at least $25,000. Indeed, the currency is already on an upward trend again, jumping back to a $15,000 valuation at the time of writing.
Regardless of whether the digital currency can maintain its current heights, the volatility in its price was enough for Steam to drop support for earlier this month, and other services may soon follow.
Source: Coindesk via Ars Technica